Common Accounting Fears in Business Owners

Posted by Kartik Kumar on December 4th, 2020

Nobody talks about fear among business owners when it comes to accounting. Let’s talk about this fear, worry and concerns. There is fear of change from traditional to virtual accounting and bookkeeping services, fear of misguided informaxion meaning inaccurate books of accounts and most importantly fear of associated costs meaning fee of outsourcing payroll services. Isn’t it? Many businesses especially startups and small businesses are often held back by fear in one or more areas. But often it isn’t the fear that holds you back rather an unknown on the other side of things that keeps you away from moving forward. So, this article will cover certain fears that arise on a regular basis. 

Being a business owner can be stressful with over half of business owners routinely suffering from sleep deprivation. Following are the common fears in business owners : 

The Fear of Change:

Traditionally, all businesses had a part-time or a full time accountant looking after business books. But now, when there is advancement in technology, most businesses trying to save on costs have shifted from in-house accounting and bookkeeping services to virtual bookkeepers and accountants. This is the biggest fear so far in the fear of change. Around 32% of business owners find it a major challenge to keep up with the latest technology which is an increasingly important part of running a successful business.  

The idea of moving from traditional to virtual accounting can be overwhelming. But surely, businesses want to adapt to the needed change. But the question is, is it really worth it? Would this change cause stress or strife? 

While we want to say that a change is worth a shot but the answer really depends on your circumstances. For businesses that have outgrown their accounting, the fear of change should be less than the fear of insufficient accounting. But to alleviate fear of change, many outsourced payroll service and accounting outsourcing companies have come up with simple solutions to help their clients meet their needs. You need to outsource your technology strategy to accounting outsourcing companies. 

The Fear of Information:

The fear of information is the most intriguing fear accountants have encountered. This fear most often comes from deep within business owners, lurking books of accounts and even accounting in general isn’t accurate. As a result, the fear of information mounts up over the numbers that reveals when the books are fixed and when they are brought up-to-date. Most often, businesses fail over inaccurate accounting and make disastrous business decisions when based on wrong information. You might make informed financial decisions if the accounting information is  rectified over a period of time. 

But once your information is rectified and is accurate you will make informed business decisions and your fear will be replaced by certainty and assuredness that will help you to make data driven decisions which will indeed help you to grow your business. 

The fear of cost:

Fear of cost is a very reasonable and very common concern. The fear of cost is often attached to the fee of an accounting service provider. It is best to note that outsourcing accounting service providers can help you save 50% of overhead costs. One must choose value over price, meaning quality of services delivered over cost of service. This will be a true investment in having accounting driven  business growth in the future. Offsetting fear of cost is an experience that needs to be understood by new clients. 

The Fear of filing taxes:

Around 45% of business owners say that filing taxes is a major concern for them. While 30% of small business owners say that tax laws have had a negative effect on their business. To alleviate this fear of self-assessment tax returns, business owners must seek professional help. They must get a good tax return services provider or an accountant on their side. You need to be stringent about record-keeping. 

The Fear of managing cash flow:

Now, another fear is managing cash flow. Around 45% of business owners experience this challenge of managing cash flow. To alleviate this concern, you need to keep a close eye on cash flow meaning stay on top of cash flow weekly or even daily basis. You must accelerate payment from your customer on time and delay your own payable whenever possible. You may choose accounting outsourcing companies to help your business stay afloat and manage cash flow effectively while you take care of other responsibilities that are equally important to run and grow your business. 

The Fear of staff shortages:

Based on statistics, it is observed that 29% are concerned about losing key staff, 25% fear that employees may not be loyal and 24% identify a lack of much needed skills. To alleviate this fear, you need to keep your staff happy with training, career progression, benefits and a pleasant working environment. You must show appreciation for your employees. Stay clear of the goals with your staff, what you expect from them and what are your long term objectives. 

The Fear of Work-life balance:

It is crucial to maintain work-life balance. 26% feel the pressure of managing their social lives. Hence you need to keep track of your hours to avoid burnout and over-working.